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Re: mndieck post# 66998

Friday, 08/14/2009 11:50:21 PM

Friday, August 14, 2009 11:50:21 PM

Post# of 165856
A nickel explanation is that perhaps the best thing about the MACD hidtogram is that it rarely reverses once it trends toward the "0" line.

The trick, from a bullish standpoint, is to cross that line. Typically, this is when it runs hardest, as bulls have control, until the trend reverses from its peak.

Tops and bottoms of a run almost always occur at the peaks and valleys of the histogram.

That's a very simplistic "nickel's worth" of an explanation.